Having herald Green Revolution in the past, farmers in Punjab are now keen on Green energy by setting up solar projects in their farms.

CHANDIGARH: Having herald Green Revolution in the past, farmers in Punjab are now keen on Green energy by setting up solar projects in their farms. Solar power proposals to set up projects of capacity 629 MW by farmers have poured in against the target of 500 MW set by Punjab Energy Development Agency under the Farmers' Solar Scheme.

"As such projects doesn't include the cost of land the entire cost could be covered in 7-8 years," says Ravinder Bansal a farmer from Muktsar who is keen to install solar project of capacity 2 MW on part of his family owned ancestral land. Under the scheme the PEDA facilitates Power Purchase Agreement (PPA) with Punjab State Power Corporation Limited. The PPA is effective for a period of 25 years from the date of commissioning of the project.

But Bansal is unsure whether his project will get nod from the agency. As after Prime Minister Narendra Modi ramped up Solar target in June last year to 100 GW by 2022, more and more farmers have evinced interest in the scheme. The scheme was launched by Punjab government in the beginning of the current financial year.

"A large number of proposals will not get approved as the target under the current scheme is 500 MW," chief executive, Punjab Energy Development Agency Amarpal Singh told ET. Singh said that the scheme is part of the strategy to promote small grid based solar projects.

Against PEDA announced tariff of Rs 7.4 per kwh, lowest tariff of Rs 6.25 per kwh have been offered by a famer under the reverse bidding process, senior official in Punjab Energy Development Agency said.

As many as 381 farmers so far have submitted proposals to set up solar power projects in the state. Under the scheme, PEDA is promoting projects with capacity between 1 MW to 2.5 MW from farmers who owns land. A project of one-MW capacity requires around five-acre of land.

"The projects are expected to be approved in the coming weeks," senior official in Punjab Energy Development Agency said. Farmers are awaiting extension of the scheme as a large number of projects are unlikely to be covered under the scheme due to overwhelming response to the scheme.

To retain agricultural activities, PEDA is encouraging famers to install solar panels at some height above the land. "But given the cost overruns, farmers are opting to set up projects on partial land and engage in farming in remaining landholding," Bansal said whose extended family owns 250 acres of agricultural land.

The PEDA chief executive attributes success of the scheme to widespread power evacuation infrastructure in Punjab. "As state has rich power evacuation infrastructure the project cost will be limited," he said.

Under the scheme farmers will bear the total cost of evacuation of power projects to the nearest 66KV sub-station. Under the scheme farmer will have to furnish the financial closure documents, technical feasibility clearance and final technology selection documents within 120 days of signing of PPA.